KelpDAO’s rsETH Appears Hit by Reported $292 Million Exploit

KelpDAO’s rsETH Appears Hit by Reported $292 Million Exploit

Kelp DAO says a single-validator LayerZero setup helped enable the rsETH bridge hack, adding a new technical dispute over responsibility after the reported April 18 theft.

STETH
AAVE
RSETH

Fact Check
The central claim has two parts: that KelpDAO's rsETH appears to have suffered an exploit, and that the attacker allegedly used Aave lending markets to sell or extract value from the stolen assets. The fetched article "ZachXBT Flags $280M+ KelpDAO Exploit Hitting Ethereum DeFi Lending Markets" directly supports both points, stating that an attacker reportedly exploited rsETH, deposited the acquired rsETH into Aave V3, and borrowed against it, creating bad debt. However, the same source reports losses above $280 million and says KelpDAO had not yet officially confirmed the exploit. Because direct access to the linked X posts failed and I could not validate an official KelpDAO or Aave statement in this run, the evidence remains report-based rather than fully primary. The wording "appears" and "reported" is therefore appropriate, but the specific "$100 million" figure is not supported by the validated source and is lower than the available reporting.
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Summary

Kelp DAO has disputed LayerZero’s official explanation of the reported rsETH bridge exploit, saying a LayerZero “default” single-validator setup helped enable the attack and triggered a rushed security migration after roughly $290 million was stolen. This adds a new technical disagreement to earlier statements that tied the incident to compromised RPC infrastructure and said the issue was limited to KelpDAO’s rsETH configuration. The exploit was previously reported as involving about 116,500 rsETH worth roughly $291 million to $293 million, with affected protocols including Aave and Lido taking containment measures such as market freezes and deposit or withdrawal pauses.

Terms & Concepts
  • rsETH: A liquid restaking token linked to KelpDAO that is used across DeFi protocols for trading, bridging, and collateral purposes.
  • LayerZero: A cross-chain messaging and interoperability protocol used by applications to move assets or data between blockchains.
  • validator: An entity or node that verifies and signs transactions or messages in a blockchain or bridge security setup.